Correlation between the Japanese yen and gold | 26 May 2021

USDJPY trading plan:

Gold was up on morning in Asia, erasing its 2021 losses as signs of inflationary pressures stoked investor concerns and the U.S. Federal Reserve assured investors on the outlook for monetary policy. The dollar, which usually moves inversely to gold, inched down towards a four-and-a-half month low. Benchmark U.S. Treasury yields fell to a two-week low of 1.56% during the previous session. Fed Vice Chairman Richard Clarida said the central bank could be ready to discuss the slowdown of asset purchases, in an echo of the recent minutes from the Fed’s latest meeting.

Investment idea: sell 108.88 and take profit 108.45.